Following the unearthing of Wells Fargo’s fake account scandal, the state of California is suspending several of its business relationships with the bank, reports HousingWire staffer Ben Lane.
John Chiang, California’s state treasurer, announced Wednesday that the state is suspending its “most highly profitable business relationships” with Wells Fargo for at least one year. California is suspending all investments made by the Treasurer’s Office in all Wells Fargo securities, according to Chiang.
“Wells Fargo's admission that thousands of its bank employees opened over two million fraudulent consumer accounts is a legal and ethical outrage that cannot go unpunished,” Chiang said Wednesday.
“Wells Fargo’s fleecing of its customers by opening fraudulent accounts for the purpose of extracting millions in illegal fees demonstrates, at best, a reckless lack of institutional control and, at worst, a culture which actively promotes wanton greed,” Chiang continued.